Immobel (IMMO) H1 2024 earnings summary

Executive summary

• Secured final permits for projects with a GDV of €804.8 million, a 266% increase over FY 2023, with 63% for residential projects; total permitted project portfolio now €2 billion on a total portfolio of €4.7 billion.

• On track to deliver 1,315 apartments in 2024, including major deliveries in Poland and Paris.

• Rental income from long-term leases aligns with the annual objective of €16 million.

• Significant office and residential asset sales, including Brouck'R office space and River Place units.

• Withdrawal from Proximus Towers acquisition led to a €48 million impairment charge.

Financial highlights

• Underlying EBITDA for H1 2024 was €14.1 million (internal), with an underlying net result of €4.3 million and a reported net result of €-89.1 million due to impairments.

• Revenues for H1 2024 were €113.6 million, up from €83.6 million year-over-year.

• €93.4 million in impairments recognized, mainly due to the halted Proximus project and weak markets in Luxembourg, Germany, and France.

• Liquidity position stood at €166 million as of June 2024.

• Gearing ratio was 68% as of June 2024, with average debt cost at 3.8% and over 80% hedged or fixed until mid-2026.

Outlook and guidance

• 2024 revenues are projected between €250 million and €400 million, with expectations to reach the upper end of the range, up from €216 million in 2023.

• Focus remains on operational excellence, risk management, and liquidity preservation amid challenging real estate market conditions.

• No corporate refinancing planned for 2024; decrease in gearing ratio depends on divestment of office assets.

• Permitted project GDV expected to reach nearly €2 billion by end FY 2024.